Rhode Island House Bill H5413

Rhode Island 2023 Regular Session

• Introduced: 2/8/23
• Refer: 2/8/23

Caption

Contractors' Registration And Licensing Board

Impact

The introduction of H5413 is expected to have a significant impact on state regulation regarding contractors. By mandating specific insurance types and coverage limits, the bill aims to enhance the accountability and professionalism within the contractor community. It establishes a more structured framework through which contractors can operate, while also assuring clients that hired contractors are insured against possible mishaps. Failure to comply with these insurance requirements will not only affect a contractor's registration validity but could also lead to penalties, thereby incentivizing adherence to the law.

Summary

House Bill H5413 is an act focused on the Contractors' Registration and Licensing Board in Rhode Island. The bill amends existing laws to ensure that contractors maintain adequate insurance coverage, specifically requiring errors and omissions insurance as well as public liability and property damage insurance. The mandated coverage includes a minimum amount of five hundred thousand dollars, which aims to protect both contractors and clients from potential legal liabilities arising from contractor work. Additionally, contractors are required to provide evidence of this insurance at the time of registration and renewal to the board, ensuring compliance with the new standards.

Contention

While the bill primarily seeks to ensure better protection for both contractors and their clients, it may face scrutiny related to the financial implications for smaller contractors. Critics might argue that the insurance requirements could impose a heavy financial burden on less established contractors or sole proprietorships, potentially limiting competition in the market. The need for errors and omissions insurance may discourage some individuals from entering the industry due to increased operational costs, leading to concerns about accessibility and equality within the contracting profession.